dagen it connell, it is yours. speed. we will try to find out if the budget cuts are legit. millions of iphones are headed back costing the company a pretty penny. dagen: why pet food could be a great that. people are pampering their pooches. why? we will tell you. ♪ connell: a busy day. all the news and the dog video.

haven't you pasted to her dogs food? dagen: yes. it is doctors prescribed dogs food. i do not want to eat it for lunch today, but it did not kill me. clearly. it is top of the hour. time for stocks now. nicole: let's talk about what we are seeing on the major averages today. a loss of about one third of 1%. the nasdaq is flat. but we are watching here on the dow jones industrials, microsoft, up about 4%. this is on speculation that a hedge fund getting involved in microsoft. we are seeing names such as ge, united healthcare, mcdonald's, we are watching them very

closely. we were down 317 points. a loss of 2.2% last week. we will see what happens now. dagen: thank you, nicole. connell: let's talk about this possibility of airport delays. dagen: rich edson is standing by at reagan national airport in arlington, virginia with more. rich: experience a few hundred delays yesterday. they say in the future they could see a quarter of the nation's airline travel addicted by these cuts. take a look at the maps.

it is due to the sequester cuts. laguardia has a compensation between the cops and the wind. the way they have decided to enter the way they are supposed to cut these under the law maximizes the input. >> they have never been furloughed before. the professional deep the planes in the air. they get them to the ground. rich: we have contacted the faa repeatedly this morning. take a look at the numbers.

16 billion a year. total employees for the faa, 47,000. 50,000 of them are air traffic controllers. they are supposed to take one day off every other week. to you. connell: rich, thank you. let's go to the fourth opinion editor. he joins us from washington delta. the politics of this is interesting. we are just getting started this week. what is the political impact, in your view? >> i think political impact is very bad. it's a black guy for the obama administration, congress and the faa.

this is going to come back and haunt washington in a major way. connell: you said it would be disastrous for the administration. why? >> well, i think ultimately the jury understands there are always ways to cut spending. it would make the obama administration appear as though it is making six. there has to be some other way to reduce expenditures that do not impact flight times and everything. do not think this looks good for congress or the obama administration. connell: most people believe that it is the big four medicare and the fence that would really hit the budget and that is where we would really have to cut back. we do that, there will be

political fallout from everything. they like their social security. they like their better. >> yes. i think so. the real problem is government overspent. we also have a lack of growth. if you have strong economic growth, you would not have these problems of revenue shortfalls that come into spending. ultimately, this is pretty basic. there is a lot of pork in the budget. there are a lot of things that the federal government does that they are just not empowered to do constitutionally. maybe abolish certain programs. it would mean things like the faa and we as taxpayers pay for would not be curtailed. connell: thank you for coming

on. dagen: government funding is a nonstarter, not a kick starter for the economy. that will not get in the way of the white house trying to spend more money speak that is true, dagen. people in a sense almost do not real. government spending went to this huge peak after tarp. over 25% of our economy. it has now fallen as a share of gdp. we are down close to 22% of gdp. it is still too big. government is actually falling as a share of gdp.

first-quarter, the quarter that we just finished will get data for that in about a week. we are expecting about 3% growth. that is pretty good news from the economic front. dagen: is that already factored into this stock market? >> well, at least in the short term i think you are right. i believe the stock market itself is undervalued considerably. in other words, if you go back to early 2009, it is really the rise in profits that has driven this market. if we get any extension, what the investment community called multiples, the stock market could go even higher. the dow is worth it fair value

18,500. we have these pullbacks everyone in a while. is happening again. people are scared. it will not last long. dagen: given the horrific news that we got last week, you have the school shooting at the end of last year, they do have the boston marathon bombing and then you have that exposed in west texas. has risk and repriced just temporarily or at all? the yield is down again this morning. >> think, today, since the crisis of 2008, 2009, i will call it.

i think the market and investors have a form. a form of posttraumatic stress disorder. every little thing that happens, i think causes people to want to run away from risk. if you look the last four years, it is really the equity markets that have outperformed. they are running from every event, but in the end, it is the profits that keep rising that keep pushing this market even higher. i think that will continue to happen in 2013. dagen: good to you, brian. it is good to see you. thank you so much.

connell: the boston terror case, we will get into it and how the bombings are changing the way we defend our country. dagen: apple sending back millions of iphones because they were not to apples liking. take a look at how the stock is trading today. up almost 1.5% today. ♪

♪

for about 15 minutes past the hour. connell: trip is here to make us a little bit of money. go ahead, charles. charles: checkpoint software. a little favorite of mine. they do security for companies. what i like is they have gotten into this whole data scenario. we talk about the cloud, but no one ever talks about securing the cloud i think that will be a great area. i just think the stock is so

oversold. some technicians would argue it is a reverse head and shoulder. this month, there will be a whole bunch of investor cards is. i love the risk reward on checkpoint right now. pretty good room to the upside. connell: you have more on the time of year. charles: in the next hour, we will talk about the spring swoon. connell: 16 minutes past the hour. very good. thank you. anything to add? let's go to nicole at the stock exchange. looking at apple. nicole: everyone is talking about apple. it is maybe owned in the s&p,

for example. it is still under $400. this was a $700 stock last september. you have two that are hot on it today. we are looking at avondale. there is good news. they are liking what they are seeing with apple. so far, apple shareholders are disappointed. back to you. connell: if we see you at a party, we will not ask about apple. dagen: i am not talking about apple at a party. connell: i do not want to see at a party anyway. dagen: you are not invited. connell: investors who have bet on it.

the feeding frenzy in the pet care industry. that is a cute dog. this one on the other hand, i am not so sure. we will transition smoothly from dogs on television two currencies. we will be right. ♪

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♪ >> i have your fox newsman. five people were shot dead after a gunfight in an apartment complex just south of seattle last night. one suspect was shot by police and to dad were found in a parking lot and two others were found inside the apartment complex. crime has been ruled out as part of the explosion in west, texas. the mayor said ten of the 14 who died were first responders. chinese rescue crews rushed food

to residents trapped this weekend after the earthquake. those are your head but. get you back to dagen. dagen: thank you. good to see you. existing home sales dipping slightly. home prices compared to a year ago seeing their biggest jump in seven years. what to make of this? add pinto is here. everything seems to improving. sales are holding up. prices are going through the roof. >> right. fundamentals look like they are improving, but, again, this is not anything close to a normal

target. fannie mae, federal housing administration and the federal reserve. that is what is driving this market. job growth is not there and certainly income growth is not there to justify these housing price increases. incomes are not growing. those borrowers at the lower end, fha borrowers, they are already at the max of what they can borrow. dagen: to your point, if you look at homes priced under $100,000, sales were down 16%. do you still have these numbers that are holding up fairly well?

>> i was looking at charleston south carolina this morning. what i noticed was that zip code where homes were selling for about 85 or $95,000 a year ago are now selling at 100-$103,000. that is a big increase. they are up 20% over this. what will happen is the government will want to make those homes more affordable. that means loosened underwriting standard and more subsidies. that is the slippery road that we just went down over ten or 15 years. the government will want try to bring subprime zero. i was at a conference last week and i could hear the advocates

gained at that conference. they are using the same language that was used in the late 80s and 90s. they were saying we need to loosened underwriting standards in order to get the outcomes that they want. dagen: look at it this way, though, we do not have to bailout fannie mae and frame back because we already own them. thank you. >> thank you, dagen. connell: multiple reports indicating that apple has returned over 8 million iphones to the chinese manufacturing company. apple sent a team over to fox, facilities to deal with the problem. dagen: let's talk about some doggies and kitty cats. spending 60% more than a year prior to feed their pets.

$19 billion. all is not good in petland. obesity in cats and dogs is also climbing. check out some top dog stocks. there you go. a lot of people think pets are fat. connell: are that you're going to say, let's check out some fat dogs. dagen: you are supposed to be able to see their ribs in the back. connell: i am glad we had a chance to stop and talk about this for a few minutes. the fact that you taste your dogs food is also interesting. we will get to the markets, which are down today.

we have paul bremmer coming up. dagen: if you like the recent drop in gas prices, the man who knows more than that, tom kloza is coming up. there is an important trend in demand that could send prices even lower, much lower. that is ahead. ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

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dagen: stocks now, people. nicole is live from the new york stock exchange with movers today. >> taking a look here, dagen, two names that i think everybody is familiar with. we're looking first, both are hitting new highs. we'll start off with six flags which is at a 52-week high. take a look there.

we have a small. we're trying to get it big for you. all-time high. attendance up 41% in the latest quarter. is that unbelievable for you? when you talk about six flags, we're watching at 72.85. they came in with the quarterly reports. they beat on the top and bottom line. as noted, heavy volume and certainly that's one that we'll continue to watch. we're also taking a look at hasbro. it's actually a nasdaq stock but that's another winner. they came out with quarterly numbers. this is not an all-time high. we're taking a look at them. they did have some restructuring charges but some of the things where they saw stronger demand include my little pony, even g.i. joe. the ferby and the my little pony are the two biggest. back to you. dagen: thank you. connell: boston marathon bombings were a week ago today. one suspect dead and the other,

dzhokhar tsarnaev, is reported to be hospitalized with a serious neck wound that's preventing him from being able to speak. dagen: here is the very latest. we've been able to confirm everything this morning that had been out there, one source report if you will? >> what we know from the f.b.i., from the sources of the f.b.i. through the hospital who -- and they released this information is that he's in serious condition but stable condition. now, some reports you may be talking about are that the suspect is actually awake and he's able to write some things down. that's not being confirmed through official f.b.i. channels. not being confirmed through officials here at the hospital so we don't know how accurate those reports are. we're still awaiting word on what sort of charges this suspect will face. we know it's possible he could be facing charges as early as today. even as he lies in the hospital bed and we know from a high ranking worker that one of his wounds was to the throat. we do know he has a very serious

wound to the throat and that he lost a considerable amount of blood on the scene in watertown. that's really all the details we have fully confirmed. connell: thanks. molly live from boston for us. live to washington and paul bremer joins us. former chairman. thank you for coming on. we appreciate it today. >> good to be with you. connell: for obvious reasons, you know, fallback on europe history and terrorism and counterterrorism and talk specifically about what molly is reporting on first. we can talk about the future after that but this investigation. what to you is the most important question that we need answered right now? >> the most important thing in counterterrorism is to prevent attacks. most important question aldz is gathering good intelligence. we need to know what happens here. it's quite clear from the reports that the older brother was radicalized over a period of

time, maybe having so do with this trip to -- back to russia a couple of years ago. we need to know why the russians alerted us, what intelligence did they have, what intelligence has the f.b.i. found since then and can that help us prevent future attacks. that, after all, is the objective. connell: picking up on that, other than the obvious which would be the brother still alive, who would you want to speak to if you're conducting this investigation and who -- you know, the top two or three people you really want to hear from right now. >> well, the most important thing is to find out from the russian intelligence services why they were suspicious about the older brother. they must have had him under surveillance when he went back to chechnya. he must have met with some people. it's those people and what those people are up to that may provide the information as to whether this was a larger plot or just a radicalized american. connell: is it fair to already criticize the f.b.i. for having quote, unquote, dropped the ball

in the questioning of this brother and not following up further? >> it's not a question of whether it's fair. the question is what does the record show and i'm sure congress will have the director up there to talk about that. it is apparent that the f.b.i. decided after some investigation that it was not a cause for concern here. how far into it did they look? did they go back and talk to the russians about their sources? these are a lot of questions that are going to have to be gotten to. one of the other things related to this is we need clear thinking here, not politically correct thinking. we need to understand that the threat posed to us is by radical islam. it's been there for 20 years now and that is something that has many dimensions, including the dimension we saw in boston. connell: all right. let's talk a little more broadly about that threat and what we do about it because since 9/11 and the 12 years that came in between that attack and this

most recent one we're talking about, a lot of people say why haven't we seen more of this, is it just luck, great intelligence work, a combination of the two. what are your thoughts on that and then do we need to change anything that we've been doing after what's happened in boston? >> i think it's a combination of some of the measures that were put in place by the bush administration early on after 9/11. certainly some of the problems that the national commission on terrorism that i chaired and reported in 1999 and 2000, some of those problems were dealt with. one of the things that comes out quite clearly is the need for better community policing. it's quite clear that friends, neighbors, relatives, people at the mosque knew that the older brother here was radicalized. it was called an extreme change in his behavior. that kind of thing with good community policing should be picked up. the f.b.i. has a program to talk to mosques around the country. we need to hear more about whether that has been done well enough and aggressively enough

without obviously impinging on people's rights, on the bill of rights. but community policing can do a lot in crime in general and certainly could have helped here it looks like. connell: we really appreciate your time. thank you for coming on today. >> nice to be with you. dagen: drivers are skimping on how much gasoline they're going through and tom closes up next on how the lack luster fuel demand is sending prices lower. connell: then we'll look at whether the latest pull back at the markets is just a pause or maybe something the bulls should be more worried about. that's coming up on stocks but also bonds. dagen measured the yield earlier. there it is. we'll be right back. ♪

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negotiations between germany's largest airline and union that failed to reach an agreement. the strike will cost tens of millions of euros and shares of power one are surging on news of a buy out. a.b.b. is buying the company for about $1 billion. it's the world's second largest maker of solar inverters. ♪

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tom? >> i think most of it is demand driven. tore one reason or another, we're using a lot less fuel than we were a year ago and when you compare it to as recently as 2011, people are driving about 10% -- or using 10% less fuel per day. i'll not clear as to whether or not there's a dramatic shift and it's due to economic melees or whether people are just driving more judiciously with better cars but it's definitely demand driven and not supply driven at the moment. dagen: will prices keep falling? >> i think they will. if you live in the coasts and the gulf coast in particular, you may see some lower prices. if you're in the upper great lakes like chicago, you probably are listening to me and saying, what's he talking about? prices are only about five or 10 cents lower than they were last year. in new jersey, we're down almost 50 cents so we have the biggest drop year to year. we have the biggest governor and

maybe the most popular governor, too. and most places are down 30 to 40 cents or so. may is very, very weak demand month for all types of oil so we can look forward to this persisting for awhile. dagen: that spike we've become accustomed to, could it just come later in the summer? >> yeah. i think we're more vulnerable to hurricanes because we've got more refining at texas and louisiana gulf coasts so we're more dependent on those regions so to the extent the regions get some wild weather, it could be an interesting august and september. but you're not going to see those numbers that people pump have been talking about like $4.50, $5 whether it's an event in the mideast or an event in weathering the gulf of mexico. dagen: what about investor money and the price of oil? has that come to the point you cannot get a spike? cost of crude is up today, about

$88.50 a barrel. >> crude oil seems to be searching for an equilibrium right now. it was bet on the wrong side so i think that that's probably quieting down. there's a lot of long, lonely investment money in futures and options that will stay there but i think people got hurt real bad if they speculated in gasoline this spring because prices peaked around presidents day and i don't see the chance for anything really dramatically high between now and july 4. dagen: you're from jersey, aren't you? >> i am. born and bred. dagen: that's how we let you get away with governor christie like that. >> i'll remember during the audit. dagen: tom, good to talk to you. be well. you always make me love. thanks a lot, man. connell: let's go to stocks now, another edition.

this is mark joining us. it's been kind of a rough one here for awhile for obvious reasons and all the market we've had a pullback. charles paip -- charles payne was up earlier and we'll talk about the spring swoon in the markets. what's your outlook? >> i think what we're seeing is that market sentiment has certainly shifted. about two weeks ago people were using words like parabolic. over the past week it seems like market sentiment is definitely cautious if not bearish. economic data is having a heavier impact than in the past. blinders are off it looks like. connell: you're worried about a big time pullback, if you had to guess, the down side as opposed to something we'll recover from more quickly. >> i think certainly the 58 moving average on the s&p 500, 1533 was impact last week and held from the selloff.

going forward, if we can actually close above the 1554 level, we may get up back into that 1570 level. i think that eye day lot of traders are looking at the sway. i think we're in a different place and time right now. connell: thanks. we'll be back at the exchange at the top of the hour. thanks a lot. dagen: we keep focusing on this topic but the big debate. is the market in pull back or in correction mode? dow suffering the worst one day drop in six months. gold suffering the deepest plunge in 30 years and the fear gauge jumping last week. connell: it did. doing some reporting for us, liz and that's the bottom line today. >> thanks. good to be with you guys. i don't know if you saw this comment from the bear who runs mute yal funds. he said any time you see a major business publication having an image of a bull on a pogo stick jumping higher which is the

image on the cover, then maybe it's time to cash in your chips. that's sort of igniting a debate on wall street. are we headed basically for a pullback or a correction mode? i want to show you what's been happening lately in the markets. we're going to also show you what the pullback could look like if there is one. you're talking about essentially an average 7% pullback. those are due to the 25 pullback since march 2009. we're talking about a 7% or 8% pullback if it does happen. that's the census on wall street. here is what one guy is saying. he runs prudent yal international investments. he's saying after the soft patch, the economy and earnings will rebound in the second half and that a correction could prove to be a good buying opportunity. some of these guys are saying increased volatility is

systematic of a break but they're talking about pullback. they're not talking about a correction. last time we saw a correction was in 2011. that was 15% plus. we're talking about a pullback of half that amount. that's what the debate is on wall street. send it back to you. dagen: thank you so much. connell: we've been bringing you breaking news telling the "wall street journal" about a data breach earlier this month. sandra smith is out there for us talking to some officials, has a statement from the c.m.e. when we come back. dagen: take a look at some of today's winners on the nasdaq. 

dagen: more on breaking news from the chicago mercantile exchange. fox business confirming a data breach at the exchange earlier this month. connell: sandra smith has been talking with officials about all of this and she's back at her post now. what are they saying, sandra? >> well, they are saying that there was a bug in the c.m.e. group technology that allowed about 500 trades out of a million specifically in the agricultural group as well as the energy group. as far as swaps on the commodities, the trades were identified. remember, they're supposed to remain anonymous. 500 out of the million were identified to their customer

firms. this is obviously something that was not intended to happen. c.m.e. group has issued this response. on monday, april 1, 2013, c.m.e. implemented an enhancement to its s.d.r. swap reporting service. enhancement contained a bug that permitted a small number of market participants to view commodity swap trades of other market participants. approximately 500 transactions out of a total of nearly a million were mistakenly disclosed. customers were who alerted the exchange of the problem. obviously they're saying this was a mistake. confidentiality is key for their market participants but again, it has been corrected and they are saying that it was a bug in their technology that led to this data breach. so it's all under control now but it is just now being

revealed this happened earlier this month. connell: what about the markets? everything all right? what's the big focus on the floor? >> there's a huge spike in gold prices this morning. up three straight days now. remember, everybody was starting to talk about gold and whether or not it was finding a bottom here. barkley's, one of the investment banks has been bearish on gold saying it could go as low as 1200, 1,300 an ounce. they're saying it's the retail investor buying gold, bar, gold coins, gold jewelry. they believe gold bottomed out and they're prying a bottom in the market. so both gold and silver the best performing commodities this morning. back to you. connell: thanks. the other -- one of the other big stories today, airport delays. passengers lining up at airports across the nation. delays are being blamed on budget cuts. dagen: and a boston business owner paying the price for the

terror manhunt. cheryl and dennis have those stories coming up. "markets now" continues. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below...

to the finest comforts above. we're not simply saluting history... we're making it.

cheryl: after the dow's worst week of the year, most of the dow jones industrials, most of these names in the red on some rough earnings and economic news. this as global c.e.o.'s are still not ready to spend their cash. dennis: boston's bombing suspect talks to authorities. cheryl: federal budget cuts means you should budget for extra time at the airport. we're live at washington's reagan national. sequestration is affecting travellers there and across the country today. dennis: and stocks now every 15 minutes. we have nicole at the floor of the new york stock exchange. >> a day right now on wall street where we're seeing down

arrows again. last week was our biggest losing week of the year 2013. dow drops 317 points and that was 2.2%. we're just seeing a few names squeezing out gains. energy names managing to hold on to some gains. we're seeing some of the tech names such as microsoft and intel doing well. for the most part, about 25 of the names have had down arrows on the down jones industrials so still that nervous type of feeling here on wall street. you can see the nasdaq is up one third of 1% as i noted. tech is doing well. add apple in there as well, right? apple will be something we're watching closely. not back to 400, though. we have earnings out. we have big news as far as analysts' ratings. caterpillar came out with their numbers. six flags and hasbro doing well and existing home sales came in. we've seen home builders under

pressure. back to you. cheryl: thank you very much. despite executives getting more positive on the economy, ernst young reporting that businesses are still skittish with only 29% of companies expected to do a deal this year. i'm curious what you think of this new survey. do you think this is a lack of confidence for m. & a? do you think that's a warning that the shyness is coming off the market? >> i think it's a lack of confidence in part because there was a massive credit dislocation four years ago. so now we're at this building stage where you have to have a very slow pickup of the u.s. economy and in part, then also capital spending has to fill in so major corporations have to start using a lot of the money that's on their balance street. now, in regards to the mergers and acquisitions front, they have very cheap financing at this point and you should see a pickup of demand in regard to

mergers and acquisitions the next 18 months. cheryl: there's a lot of big names following in the m & a. berkshire and u.s. air so there's not like there's a lack of deals but overall, it seems that they're trying to hoard cash because of earnings. yet you're telling us it's going to be about earnings going forward, not about q.e. so that tells me you're more skittish than others. >> right. i'm a little bit more -- i would say our team is balanced in our approach right now. there has to be a handoff between the easing cycle and market rampup we've seen to more of an earnings and economic driven cycle. they have the next leg up within the financial system. so currently right now, we're at about 1575 on the price target and the earnings expectations for s&p 500. cheryl: you've been steady at

the s&p 500 but there's something else you're talking about. that's the economy. if you look at g.d.p. estimates, you have people calling for 3%, 4%. that's when they say the markets will be fully -- we'll be fully invested, on a roll. i don't even see 2% right now in this economy. it doesn't feel like 3%. >> right. see, cheryl, what you had for q 1 was a little bit of a goosup within the g.d.p. it went from 2% to around 3% but real expectations going forward is around a 2% kind of growth trajectory which for us to see a self sustaining recovery, you need the g.d.p. to grow around 3 1/2% to 4%. we're far from it. cheryl: before i let you go, i'm sorry but i did want to get to another issue, the u.s. dollar. the reason i want to get to you, it's crucial for the commodity plays we've been watching every day, in particular, oil and

gold. but you're saying that we're going to see a strengthening u.s. dollar and you put part of the blame on japan. can you explain that, chad? >> you have quantitative easing in japan. what they're looking to do is lower their value of their currency and in part, that dollar will strengthen and really, there's been a direct correlation over the last several weeks to several months where when the dollar strengthens, the basket of commodities, in particular gold, will soften in value. if you're a dollar based investor. so investors in the united states that are -- that are looking at commodity play want to be somewhat more cautious in their approach. we actually started to take down our allocations on gold two weeks ago in part because of that. cheryl: that was a good move for you and your clients, i'm sure. good call on that one.

it's good to see you. >> great seeing you, cheryl. take care. dennis: we have more on breaking news from chicago mercantile exchange. a data breach at the exchange earlier this month that the "wall street journal" first reported. sandra smith is just back from talking to officials and has reaction. >> and the c.m.e. says this is an incident that they regret, of course, that occurred but this is a number of things that has happened because of new regulations on the disclosure of the trading and swaps that was implemented in january. many analysts have questioned those new regulations because of things like this happening. c.m.e. responded with this particular statement saying that on monday, april 1, 2013, c.m.e. implemented an enhancement to the s.c.r. service. it contained a bug that permitted a small number of market anticipatants.

they're supposed to be anonymous. approximately 500 transactions, this was in the agricultural and the energy swap out of nearly a million were mistakenly disclosed. the c.m.e. has also shed light on the fact this was revealed to them by their own customers. the bug has since been corrected as of last wednesday morning. the c.m.e. also saying that confidentiality is key when it comes to the market participants. another note on this particular report, d.e. shaw group, one of the scores of firms that was affected by this data breach, this is according to our colleagues at the "wall street journal." this is a hedge fund that was notified of the data breach. that's just one of the firms being named, one of the firms affected in the 500 out of a million trades. also one other point. that this is the real time transparency that the marketplace has been asking for, that many analysts have been calling into question. the new regulations on swaps is

that it reveals new price and volume data. this is a requirement to have this data but not disclose the member firm so this was a data breach. obviously they regret it happened but can be looked at as a small number in a grand scheme of things. that is, that occurred in the beginning of april and obviously affecting markets that have had a lot of volatility and a lot of volume lately in the agricultural and the energy markets. big news to report but it happened earlier this april. back to you. dennis: thanks very much, sandra smith. now to the latest from boston. the surviving suspect, dzhokhar tsarnaev, is conscious in a boston hospital and reportedly responding in writing to questions. he can't speak due to a neck wound that may have been self inflicted. republican congressman peter king of the house homeland security committee wants federal officials to explain why the suspect's dead brother was released by the f.b.i. after

they questions him in 2011 at the request of the russian government. and boston is getting back to normal and we're joined by a small business owner whose stores lost nearly $70,000 last week. she's c.e.o. of dependable cleaners. i'm glad your or deal is over. how many dry cleaners do you own in the area and how many were affected by the shut down? >> we have 16 locations in the boston market. and also offer home delivery services in about 30 other towns. and four of our locations and seven of our delivery routes were impacted by friday's shutdown. the two newberry street stores were the most affected through the whole week from monday's bombing up through friday and then brookline and watertown were also closed on friday due to the lockdown. dennis: that $70,000 loss, is that 1% of your business you would have done in that time,

10% of your business? how big of a setback is it? >> sure. it's actually -- $40,000 we lost last week and we estimate going forward that there will be an additional $30,000. if you think about all the activities that lead people going to the dry cleaner, going out to dinner, going to work in suits, professional clothing, going to charity events, different business meetings, et cetera, those things were not happening all of last week and definitely none of that happened on friday. so we estimate another $30,000 going forward of lost business. dennis: does that shave off 10% of the revenue you would have hoped to bring in? >> sure. yeah. it's a little more than 10%. the stores and delivery routes were some of our larger stores. dennis: when a business loses business like this during a shutdown, do you make it up on the back end? if i didn't drop off the dry cleaning during the shutdown

because of crisis, i'll drop it off a few days later or some of that lost forever, do you figure? >> most of it in this particular circumstance are gone forever f. you're not going out to eat, not going to business dinners and business meetings, you know, you're at home and you're in your casual clothes. so those are items that we don't think we'll be seeing in the future. dennis: are your losses covered by insurance? >> i have not checked into that. the first thing last week was are my employees safe, you know, how do we take care of this and we have counselors meeting with many of our employees over the weekend and today as well to help with getting through the emotional side of this. dennis: right. has this episode made you any more security conscious? do you want to start putting out video surveillance cameras in front of your stores or anything

more to contribute on that? videotape surveillance ended up catching these guys. >> oh, absolutely. security and keeping our employees safe and how do we prepare better for the next time this happens, absolutely is top of my mind this week. dennis: we're going to wrap and thaak you for being with us. good luck rebuilding your business and getting back to normal. >> thank you. i appreciate it. thank you. dennis: and coming up next, back in the basement, existing home sales disappoint in march. we're going to go behind the numbers. cheryl: more tax pain. congress finally ready to vote on the controversial on line sales tax plan but some business owners are furious. we're going to explain. dennis: and top dog stocks. why pet food is paying off for investors. let's look at oil. up a touch. ♪

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cheryl: let's head back to the floor of the new york stock exchange with nicole. best story of the morning has got to be analysts fighting over what's going to happen with apple tomorrow night. >> that really has been a hot topic on wall street not only today but also just over this whole year. we've watched apple go from $705 in september today to $396 but down this year but you noted the analysts' battle and that continues. downgraded it in some way, shape

or form, you do have b.g.c. upgrading the company. they think that based on where they're seeing in this weakness in apple, i think it's time to buy and so obviously they're hot on apple. i wanted to also take a look here at microsoft. dow component microsoft and other tech names, with an up arrow. see up almost 4%. there's been reports that value acts capital has taken a $2 billion stake in microsoft making it one of the biggest shareholders of a fundamentalal investor. we'll see what happens and how this unfolds but obviously it is moving this stock dramatically. back to you. cheryl: all right. making just a little money right now. thanks, nicole. dennis: it's time to make more money with charles payne. >> the spring swoon. i think we have to talk about it. probably should have been talking about it last week but we had other issues. but this is a big deal. this has been a real big deal for three years in the stock

market because it's been real, it's been sharp and extraordinarily violent. i think we have a table here. the last three years in spring when the markets pull back, look at these declines. these are enormous pullbacks. the one in 2011 was dragged on because the debt ceiling debate got in the way. you have to ask yourself as an investor, do i want to sell now, the proverbial seller may and go away or do i want to ride this thing out. here is the thing. i did a lot of work on this from a g.d.p. perspective. the second quarter has been somewhat weak but not weakest. first quarter has been weakest. second quarter has been the second strongest employment outside of the fourth quarter. it's hard to say all of this has been justified by the economy. then there's outliars, the warm winter so for most people holding great companies, i think you have to ride out the spring swoon and be prepared to buy if we do get the spring swoon. cheryl: but people are afraid.

that's the problem. they've seen their portfolios. you get the big gains in the spring and by the end of the year, you're looking at basically a flat year for stocks. it makes people nervous. >> two weeks ago we were talking about all-time highs. people take the small windows and they just can't take it. dennis: for all the spring swoons you ran on the chart there, stocks then proceeded to go up. instead of selling and having to pay taxes, whatever, maybe instead i ought to ride it out and hope on the longer term. >> are you an investor or trader? most people tell me they're investors but when the stocks go down 7%, they take the loss. listen. there's no doubt you have to be anxious here a little bit. i.b.m. got hit, mb -- mcdonalds got hit. it's cyclical and it's not going to go up in a straight line. what i'm trying to do is tell people two things. hey, these thing swoons have been sharp. they have hurt a lot. but to dennis' point, if you

rode them out, you feel better a few months later. dennis: thank you very much. cheryl: we've been talking about it for months on this show. the proposed on line sales tax. finally before congress. one company is ready to fight and it's using millions of customers to do it. dennis: and better news at the gas pump. phil is at the c.m.e. with how to make money on that. first how the world currencies are fairing over the u.s. dollars. @

>> at 23 past the hour, i have your fox news minute. defense secretary hagel is assuring israel the obama administration is committed to supporting the jewish state's military superiority in the middle east. hagel met today with israeli president peres as pentagon chief. hagel said it is israel's right to decide for itself whether to strike iran's nuclear facilities. chinese crews rushed food and

supplies to rural residents trapped after the earthquake in china. the quake killed at least 188 people and injured more than 11,000. river levels are above flood stage in several midwestern states. heavy rains and recent snow have caused the mississippi river and other rivers to surge in missouri, michigan and four other states. 41 counties are disaster areas from flooding. i'll get you back to cheryl and dennis. cheryl: all right. thank you very much. lines at the airport today just got a little longer as the f.a.a.'s furloughs begin kicking in. washington's reagan national airport has the latest. rich? >> well, here at national we're looking at about 15 minutes to an hour long delays and about 10 different flights. not necessarily due to these automatic spending cuts that are hitting the f.a.a. and air

traffic controllers. take a look here nice wade. we're looking at a handful of delays. la guardia averaging about an hour examine -- and 40 minutes. that has to do with wind also. the f.a.a. says that is because of traffic management and that isn't necessarily because of these automatic spending cuts that are reducing the work force in air traffic control towers. there are about 15,000 air traffic controllers in the country. every one of them says the f.a.a. will take at least one day off every other week and that's something that the airline industry says isn't necessary. they're suing the f.a.a. because they say the way they've designed their approach to these cuts maximizes their impact. >> we believe that the way their plan is constructed, it's going to maximize the disruption assuming that it rolls out and the disruptions occur. so not a good situation. >> the airline industry says there was some 400 delays

yesterday because of the sequester cuts. they're expecting it could be up to a quarter of the airline traffic in this country on the worst days. back to you. cheryl: always good news for the busiest airports and you're sitting at one of them. thanks very much, rich. >> all right. dennis: in a related bang, next hour the former department of inspector general is going to discuss the delays at airports across the country today. she says they show a total lack of management by the f.a.a. cheryl: shares of net flix trading substantially higher today ahead of earnings, up more than 6%. up at 6% right now. now that amazon is in the movie game, more competition could be on the horizon. we have an analyst coming up. dennis: and home sales take a dive but it's clearly a seller's market anyway and we'll tell you why ahead. meanwhile, look at some of the s&p 500 winners and maybe some losers. ♪

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dennis: as home sales dropped last month, there is actually some good news for sellers. good news for drivers and makes news from traders at the cma. why pet stores are put off for investors. it is 30 minutes past the hour, nicole petallides at the floor of the new york stock exchange. nicole: we are here at the new

york stock exchange. their are a lot of heavy hitters. he is global head of equities. tell us what you think about these markets. i know we had a selloff last week. what you think about the market here in the states and in europe? >> -- nicole: where do you get in: to not be swayed by the selloff. nicole: where are buying

opportunities? >> it is very much exposed to the rest of the world. europe is a good place. nicole: how do we do that? should they buy european banks, should they buy the index? >> they could buy the index. nicole: okay. how about merging markets in gold? >> it is volatile. it is not yet the end of the qe. nicole: that certainly is worth noting. they are holding a very important meeting upstairs. we have bank of america, hsbc, duncan near our is there. very interesting. thank you very much.

dennis: thank you very much, nicole. the dow is down 21, cheryl. cheryl: existing home sales taking a dip in march. what are you seeing here positive? frankly, today it is a big market negative. >> the numbers do look weak. a lot of the discussion in the market today has been around the person who is buying at the lower end, there is a supply constraint there. there are not a lot of homes for them to buy. cheryl: you say that is because of credit. >> definitely there are credit issues. they arise because it is hard to

apply to get a mortgage. we can have interest rates. cheryl: 3.34% for a 30 year fixed loan. you are saying that the younger demographic block they cannot qualify. they have debt issues. that is not moving right now at all. you get the data out this morning. existing home sales are down. prices, though, year over year, month over month, up ten-11%. >> not selling a lot of homes at the low end of the spectrum. we have pretty good look with.

we will see, on average, we have a bigger, nicer, more expensive home in a better neighborhood. p6 homebuilding stocks today, all of the stocks are down today based on existing home sales. >> the inference that the mark is making, we are not selling as many homes as we thought. the homes may not be the homes that are getting the first. they are not the 100-$150,000 house. they happen to be premium product.

cheryl: one of the things that have kept the market going is low interest rates. can they possibly go lower? >> it is hard to see how they could go lower. i need to take advantage of the prices. nothing will impact the affordability more than this. cheryl: part of the housing market right now in the nation? >> in terms of price increases, it will be places where we are creating jobs and our price constraint. places like new york city. prices are generally going up. we also see it in odd places. oklahoma city.

what is driving job growth, what is driving e to growth in the country today. cheryl: all right. thank you very much. it was good to see you. dennis: should you buy, sell or hold? that is ahead. cheryl: look at that chart. bad news for san diego's fleet week. that will be coming up in the west coast minute. take a look at the tan and 30 year treasuries. we will be right back. ♪ copd makes it hard to breathe...

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ask your doctor if including advair could help improve your lung function. [ male announcer ] advair diskus fluticasone propionate and salmeterol inhalation powder. get your first prescription free and save on refills at advaircopd.com. ♪ tracy: i am tracy byrnes with your fox business brief. the cuts in washington are not having much of an impact on businesses. higher taxes and lower government spending did not have an affect on employment levels in the first quarter and the average price for a gallon of gasoline is now $3.54. cheryl and dennis will talk more about this drop with phil flynn

of price future group coming up. a lot it also covers the shine group. news corporation is the parent company of the fox business network. is the latest from the fox business network. giving you the power to prosper. ♪ for seeing your business in a whole new way. for seeing what cash is coming in and going out... so you can understand every angle of your cash flow-

last week, this month, and even next year. for seeing your business's cash flow like never before, introducing cash flow insight . a suite of online tools that lets you turn insight into action. dennis: the tides are changing for tv programs. amazon now producing original tv pilots. netflix stock is soaring. we are joined by rich from albert freed and company. what is wall street looking? >> one oh yen dollars. we are at 1,030,000,000.

we think the whisper number, based on new analysts coming into the stock is somewhere between 23 and $0.27. dennis: the stock could react positively or negatively after the report? >> we think they need to surpass our number. speed okay. this has been a painful stock for you. the stock had been $300 last july. it was around $80 started covering it. you have a cell on the stock. at what point do you just decide you are wrong instead of just early? >> it is not about me being right or wrong. it is about getting the stock right. we lived through.com bubble. it is about getting a valuation

right the earnings quality was very poor. when you have successful financials going down, it puts the company and position. they need to raise money. dennis: you have a price target of $68. what is that thing that bothers you? there is a problem with off that sheet financing. not truly reflecting the obligations. explain. >> the old hollywood on the present and go forward basis. 55 million shares outstanding.

they roughly about $100 a share to hollywood. that won't come out of earnings over time. i do not think shareholders will be too pleased. dennis: is netflix different from amazon and other websites? >> yes. the closest comparable right now is time warner. they are running about four times the amount did. dennis: netflix is. >> yes. dennis: journalists have a saying, we are never wrong, we are just early.

thank you for being with us. cheryl: time for your west coast minute. green energy proponents want to see 70 new hydrogen fuel stations by 2016. there will be 20,000 hydrogen fuel-cell vehicles on the road by that time. in las vegas, getting better. just a year ago, vegas stood at 12.1% unemployment. that number is now down to 8.9%. that number will evolve pretty quickly. almost $2 billion worth of

hotels. take a look at those stocks right now. final, san diego residents and fleet week. the navy has decided to forgo the festivities. that is your west coast minute. dennis: it is a quarter till. time for stocks now. the dow is down less than a point now. from wall street to the pits in the cme. we will get to phil flynn in just a minute. what is going on on your end? >> retail gas prices, down $0.11 over the last two weeks. we have while $0.11 gain because of the flood.

pipelines are overflowing. big picture, though, gasoline prices are coming down. today's price increase in gasoline, because of the selloff is the smallest in nine out of the last ten years. we have that going for us today. the other thing, natural gas. it is pulling back today. last week, goldman sachs says natural gas is the new safe haven technology. it looks like it is risk off in the global economy it has been a great market in natural gas. maybe it may even get warmer. back to you. dennis: thank you berridge, phil flynn. cheryl: going to the dogs. where you may want to invest. and dog spit as we go to break,

take a look at someone is on nasdaq. ♪

>> i do not know about that. i asked the staff intelligence this morning to set a hearing. exactly when did rushvvlle and ask about those individuals. cheryl: that was just moments ago. scheduling a hearing to question the app ti about the boston

bombing suspects and the information that was out there leading up to the bombings. breaking news just coming in to fox business. dennis: cruise control. tom cruise back in control of the box office after three straight for spirit "oblivion" rating and almost $4 million. the dreaded cook brothers, charles and david, right-wing energy billionaires made by the los angeles times. the "new york times" played in front page on sunday. the time warner spinoff

magazines shedding no ports, a merger of the two makes even more sense. you have cnn and cbs news, hbo and showtime. what is not to like. cheryl: more tax pain. legislation to boost internet sales taxes. peter barnes is standing by. >> i think the last 20 years, cheryl. this legislation has led to a titanic lobbying battle between brick-and-mortar retailers and many internet retailers led by

ebay. it appears that it finally passed congress this year. in part because so many states need the revenue so badly. it means you would be required to collect sales taxes nationwide from no more than 9600 tax jurisdictions across the u.s. for brick-and-mortar retailers, we have an app for that. >> they will provide for software from the states to help small businesses comply. we think that online marketplaces like ebay could also serve this function. therefore, we think it would be reasonably easy for many businesses to comply with this law.

peter: states say this legislation could help collect $23 billion. california alone could pull in an extra $4 billion a year. the fight right now is really over an exemption small online retailers. ebay is pushing for an exemption of under 10 million or 50 employees. legislation got 75 votes in the senate and the test vote earlier this year. cheryl and dennis. cheryl: donohue now getting the millions of people that does ebay for him. consumer spending on pet food up more than 60% in 2012 from the year prior.

all is not good in petland. obesity in dogs and cats also. check some of our top dog stocks. all of these stocks, actually, a mixed bag today, dennis. dennis: the faa. melissa and lori investigate the agency backpedals on the so cluster cuts that are supposedly delaying flights. cheryl: sending his root growth. bernanke missing the big jackson hall meeting. that is coming up next. you are watching markets now. ♪ g. but my airline miles take it worldwide.

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